PAYMENT PROCESSING

Accept every kind of card

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Boost sales with customized credit card processing solutions

Today’s customers expect to pay with credit and debit cards, especially for online purchases. Card transactions are secure and efficient, and by offering more ways to pay, you can help increase sales wherever and however you do business. Accept payment options that support the needs of your customers: Visa®, Mastercard®, American Express®, Discover®, Voyager®, WEX®, Debit cards on the Star®, NYCE®, Interlink®, Pulse® and other networks.

Convenience

Integrate your payment processing with your M&T bank account to get paid faster.

Security

Security is critical for payment gateways. M&T helps keep you protected.

Support

Work with our trusted experts to add countertop terminals or accept payments wherever you work. 

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Virtual Card Terminals

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E-commerce Processing

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Secure Payment Gateway

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Top questions, answered by our experts

Credit card processing fees are what businesses pay to accept credit cards. Each time a business takes a card payment, they pay a percentage of that transaction total for services that include confirming that the customer has the money to cover the purchase, collecting the money from the customer’s issuing bank and depositing the money into the business’s merchant account.

The four major credit card networks — Visa, American Express, Discover and Mastercard — each charge their own varying amounts, called interchange rates and assessment fees, that generally range between 1.5% and 3.5% for each of your credit card transactions. In addition to processing fees, you’ll owe merchant fees to your bank. Those fees can vary and should be studied carefully by small business owners before committing to a service. M&T can customize a card-processing solution that’s the most economical and effective for your specific business.

When you’re paid by credit card, you can usually expect to see the money in your account within one to three days of the transaction. The card payment process includes three stages: authorization, settlement and funding. While authorization takes only seconds, settlement and funding can take up to a few days.

Authorization happens when a payment processor confirms that the cardholder has an appropriate balance to cover the payment. This lightning-quick communication between processor and issuing bank is almost immediate. Usually at the end of the business day, the merchant sends a batch of authorized transactions to their payment processor. The processor then collects the money from the credit card issuer. And finally, the funds are deposited into the business’s merchant account. The merchant generally pays fees between 1.5% and 3.5% of the credit card transaction for these processing services.

PayPal can process online credit card transactions. Businesses can integrate the PayPal payment page with their website. As long as the customer has a PayPal account or creates one, they can pay by credit card with PayPal processing the transaction.

While a payment service provider like PayPal may be a familiar solution for a new business, connecting a business checking account to a merchant account provides a more robust, customizable option. Merchant account advantages include assistance with PCI compliance, fraud protection, higher limits on transaction size and analytics tools to help you make decisions.

The four major credit card networks — Visa, American Express, Discover and Mastercard — each charge their own varying amounts, called interchange rates, but your small business is likely to pay fees between 1.5% and 3.5% for each of your credit card transactions. 

Other factors that contribute to fee amount variations are the type of card you accept and whether it’s an in-person transaction. You’ll usually pay more when you accept rewards cards, such as those that offer airline mileage or cash back bonuses, and more to process card-not-present transactions.

Credit card fees can add up quickly for small businesses. If you paid a fee of 2.5% for a $100 transaction, it would cost you $2.50 to receive your money. Multiplied by many transactions, this can really impact your bottom line. M&T can help you make the best choice for your situation. We can customize a card-processing solution that’s the most economical and effective for your specific business.

By establishing a merchant account with a bank, you can set your business up to accept electronic benefits transfer (EBT) payments. EBT is a government-assistance program that lets qualified individuals buy essentials using a card-based system similar to a debit card. Processing these transactions is simple with the right payment system.

M&T Bank can help you expand your payment acceptance options to include EBT. From mobile payment devices to countertop terminals and e-commerce gateways, we can help you drive your business forward with solutions to easily accept credit cards, debit cards, contactless cards, mobile wallet, EBT and more.

Yes, for businesses, credit card processing fees are tax deductible. That includes the expenses a business pays to accept cards as well as any fees they pay to use a card for business purchases. Individuals, on the other hand, cannot deduct card processing fees from their taxable income.

Credit card processing fees are a cost of doing business for most retailers today. Consumers increasingly expect the option to pay using a card or mobile wallet. Merchants pay recurring and per-transaction fees to accept non-cash payments. Work with your accountant to see if you should deduct these expenses and if it can lead to significant tax savings.

An M&T Merchant Services Business Consultant can connect you with vetted tax professionals so that you can take advantage of every deduction opportunity. And we can simplify your merchant payment processing with options for in-store, online and mobile payment acceptance.

Credit card payments do not process on weekends, but card transactions can still occur 24/7/365. Processing includes collecting the money from the consumer’s account and depositing it in the merchant’s account. It may take a few days and does not progress on weekends or holidays. Transaction authorization, which confirms that the consumer’s account has the money, takes only seconds and is available around the clock.

Usually at the end of each business day, a merchant sends a batch of authorized credit card transactions to their payment processor. The processor then collects the money from the credit card issuer. And finally, the funds are deposited into the business’s merchant account.

M&T’s Merchant Services Business Consultants can help set up your card processing for you. And we can provide you with resources to protect your business and customers to become Payment Card Industry (PCI) compliant.

Each time you accept a credit card payment as a merchant, you’ll pay processing fees based on the total amount of that transaction, including the sales tax. We suggest working with your accountant or tax professional to determine how you can deduct those fees from your taxable income. Diligent accounting could lead to substantial tax savings.

And we can simplify your merchant payment processing with options for in-store, online and mobile payment acceptance.

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Hear from a Merchant Services Business Consultant directly or book an appointment with your nearest branch in person, on the phone or by video.

We will contact you within 24 hours.